Companies that spent the most on business travel through the last recession are posting higher revenues and profits than others, according to a new Oxford Economics report. In contrast, companies that reduced business travel spending were more likely to see a decline in profits.

“When we analyzed data from the Great Recession and recovery, we learned that companies that invested the most in business travel tended to grow the fastest,” said Adam Sacks, managing director of Oxford Economics, who conducted the analysis.

The report, titled The Role of Business Travel in the U.S. Economic Recovery, provides details on business travel and performance across 14 business sectors over an 18-year period. Oxford Economics also included a survey of business travelers that looked at the role that business travel plays in their corporate performance. Findings include:

• Business travel delivers a measurable return on investment: For every dollar invested in business travel, companies have experienced a $9.50 return in terms of revenue and $2.90 in profits.

• Business travel helps companies obtain new customers and retain existing ones:  In-person meetings double the likelihood of “prospect conversion.” Business travelers believe that 42 percent of customers would eventually be lost without in-person meetings.

• Business travel boosts corporate performance: Nearly three-in-five frequent travelers say that higher spending on business travel would have a positive impact on their company's revenue and profitability.

• Conferences and conventions are vital for gaining new insights and for improving sales: More than three-quarters of survey respondents believe conferences and conventions provide a high-impact on gaining industry insights and developing industry partnerships.

“The findings from this follow-up report reinforce the good business sense that face-to-face meetings matter,” said Roger Dow, president and CEO of the U.S. Travel Association.  “Business travel is essential for keeping customers and winning new business – IPW is a clear example of productive and positive business benefits.” 

About Travel Effect

Travel Effect is a campaign of the U.S. Travel Association, the national, non-profit organization representing all components of the travel industry that generates $2 trillion in economic output and supports 14.6 million jobs. U.S. Travel's mission is to increase travel to and within the United States. For more information and the full survey findings, visit www.traveleffect.com.

Media Contact: April Nichols, 646-554-4295, april@violetcommunications.com